July 28, 2017

Bombardier Reports Second Quarter 2017 Results

  • Reaffirms full-year guidance; expects EBIT before special items(1) to be in the top half of range, between $580M and $630M
  • Continued margin(2) expansion at Transportation and Business Aircraft
  • Very strong orders in Transportation, book-to-bill(3) for the quarter at 1.4
  • Transformation gaining momentum

Bombardier (TSX: BBD.B) today reported its second quarter 2017 results and highlighted the progress it is making transforming the company and building earnings power.

“We continue to make solid progress executing our five-year turnaround plan,” said Alain Bellemare, President and Chief Executive Officer, Bombardier Inc. “We are improving our operating margins, transforming our operations and executing on our growth programs, which will allow us to deliver long-term sustainable value to our customers and shareholders. With our strong performance over the first half of the year, we are well positioned to achieve our full-year guidance and expect EBIT before special items at high end of our range, between $580 million and $630 million.”

For the quarter, Bombardier reported revenues of $4.1 billion. EBIT before special items grew to $164 million, up 55% over the same period last year. EBIT margins before special items(1) were 8.2% for Transportation, a robust 8.9% at Business Aircraft and 7.7% at Aerostructures. Commercial Aircraft recorded an EBIT loss in line with the C Series ramp-up plan. Free cash flow usage(1) was also in line with plan at $570 million for the quarter.

Highlighting the Company’s performance in the second quarter were strong orders at Transportation, which reported a book-to-bill(3) of 1.4. Transportation’s operational transformation and site specialization strategy also continues to gain traction, with key milestones announced in the quarter for its operations in Germany, Switzerland and Belgium. In Business Aircraft, Bombardier’s all new, class-defining, ultra-long range business jet, the Global 7000, exceeded 500 flight-test hours, and remains on schedule to enter service in the second half of 2018.

Bombardier also announced that Mrs. Sheila Fraser expressed her intention to resign from the Company’s Board of Directors for personal reasons. The Board accepted Mrs. Fraser’s resignation and thanks her for her five years of dedicated service and the insight and wisdom she brought to Bombardier during her tenure.


Bombardier reported consolidated revenues of $4.1 billion in the quarter and $7.7 billion for the first six-month period, relative to $4.3 billion and $8.2 billion for the same periods last year, mainly as a result of previously-announced production rate adjustments in aerospace segments, consistent with market demand and continued growth in Transportation. EBIT before special items was $164 million and $292 million respectively for the quarter and year-to-date, up 55% and 24% from the same periods last year. This growth was driven by significant margin improvements at Transportation and Business Aircraft, which reached 8.2% and 8.9% respectively in the quarter. Free cash flow usage was $570 million in the quarter and $1.2 billion year-to-date, mainly as a result of the Global 7000 test program coupled with the C Series working capital and production ramp up. These results lead Bombardier to reiterate its full year guidance of revenue growth in the low-single digits, excluding currency impacts, EBIT before special items at the top half of the range, between $580 million to $630 million and free cash flow usage between $1.0 billion and $750 million.


Business Aircraft

Results (PDF)

  • We are increasing our EBIT margin before special items guidance to approximately 8.0% and reaffirming our revenue and delivery guidance for the year.
  • Delivered 36 aircraft in the second quarter, including a high level of Global aircraft deliveries, yielding a strong EBIT margin before special items of 8.9%. On a year-to-date basis, deliveries total 65 aircraft, on target to reach our full year guidance of 135 aircraft deliveries.
  • In May 2017, we unveiled the new Premier cabin for the Global 5000 and Global 6000 business jets. The new design draws inspiration from the high-end craftsmanship and the spaciousness, comfort and productivity of the Global 7000and Global 8000 aircraft cabins.
  • Continued to progress on the Global 7000 and Global 8000 aircraft program with three flight test vehicles (FTVs) in flight testing, cumulating more than 500 flight hours. The flight validation program and aircraft systems integration are demonstrating a high degree of maturity. We also entered into a comprehensive settlement agreement with Triumph Aerostructures LLC that resolves all outstanding commercial disputes related to the manufacture of the aircraft program’s wing. Multiple production aircraft started moving through the assembly line and the program is on track for entry-into-service (EIS) in the second half of 2018.
  • In line with our strategy to grow our aftermarket business, we inaugurated two service centres at the Biggin Hill Airport in London, England, and in Tianjin, China, further strengthening our customer support network.
  • In June 2017, we achieved the historic milestone of delivering the 3,000th Learjet business jet manufactured, which was also the 100th Learjet 75 aircraft to be delivered.

Commercial Aircraft

Results (PDF)

  • We are reaffirming our revenue, delivery and EBIT before special items guidance for the full year.
  • Delivered 20 commercial aircraft during the quarter, including 6 C Series, 7 CRJ Series and 7 Q400 aircraft. With year-to-date deliveries of regional aircraft and turboprops totaling 28 aircraft, we reached the halfway mark of our full year delivery guidance for CRJ Series and Q400 aircraft. Production is ramping-up to support approximately 30 C Series aircraft deliveries. C Series aircraft deliveries are expected to gradually intensify in the second half of the year.
  • Including deliveries during the month of July 2017, C Series aircraft fleet now totals 16 aircraft, with both the CS100and CS300 aircraft continuing to perform well with Swiss International Air Lines (SWISS) and Air Baltic Corporation AS (airBaltic).
  • During the quarter, we received firm orders for 12 Q400 aircraft, valued at $397 million at list price, and letters of intent (LOI) for up to 52 Q400 aircraft, valued at up to $1.8 billion at list price. This order activity includes an LOI from SpiceJet for up to 50 aircraft, and the exercise of options by Philippine Airlines for 7 additional aircraft.
  • With respect to the petition filed by The Boeing Company (Boeing) before the U.S. Department of Commerce and the U.S. International Trade Commission regarding the alleged threat caused by future exports of C Series family of aircraft to the U.S., we disagree with the assertions and are responding to the petition proceedings. We expect the U.S. Department of Commerce to issue its preliminary determinations on applicable duties, if any, during the fall of 2017 and to issue its final determinations during the first half of 2018.

Aerostructures and Engineering Services

Results (PDF)

  • We are reaffirming our revenue guidance for the year and revising our EBIT margin before special items guidance to approximately 8.0%.
  • EBIT margin before special items was 7.7% for the quarter and 7.6% year-to-date, an improvement compared to the same periods last year, driven mainly by higher margins on intersegment contracts and aftermarket sales.
  • Effective July 1, 2017, Michael Ryan became President, Aerostructures and Engineering Services. Mr. Ryan, who previously served as Vice President and General Manager of Bombardier’s Belfast Aerostructures facility, succeeds Jean Séguin who is retiring after a very successful 36-year career with Bombardier. Mr. Ryan reports directly to Alain Bellemare, President and Chief Executive Officer, Bombardier Inc.


Results (PDF)

  • We are reaffirming our revenue guidance and increasing our EBIT margin before special items guidance to approximately 8.0% for the year.
  • Revenue growth is gaining momentum as execution of key projects progresses, increasing 3.6% in the second quarter compared to the same period last fiscal year excluding the currency impact, and 4.4% on a year-to-date basis.
  • EBIT margin before special items increased by 1.9 percentage points in the second quarter compared to the same period last fiscal year, reaching 8.2% in the second quarter, including the positive impacts of transformation initiatives. EBIT margin before special items for the six-month period reached 8.1%.
  • During the second quarter of 2017, we won several significant orders in Europe, mainly in the U.K. and France, resulting in a book-to-bill ratio of 1.4. The majority of our order intake in the second quarter of 2017 is based on current product platforms, supporting the re-use of existing technologies.
  • Significant progress was made during the quarter towards our ongoing structural transformation, which will enable the multi-year site specialization strategy. Key milestones were reached with Supervisory Boards and unions in Germany, Switzerland and Belgium, which will lead to gradual manpower adjustments of up to 2,200 positions in Germany, 650 in Switzerland and 160 in Belgium. In connection with those organizational changes, severance costs of $181 million and asset write-downs of $32 million were recorded as restructuring charges in the second quarter in special items.

About Bombardier

Bombardier is the world’s leading manufacturer of both planes and trains. Looking far ahead while delivering today, Bombardier is evolving mobility worldwide by answering the call for more efficient, sustainable and enjoyable transportation everywhere. Our vehicles, services and, most of all, our employees are what make us a global leader in transportation.

Bombardier is headquartered in Montréal, Canada. Our shares are traded on the Toronto Stock Exchange (BBD) and we are listed on the Dow Jones Sustainability North America index. In the fiscal year ended December 31, 2016, we posted revenues of $16.3 billion. News and information are available at  www.bombardier.com or follow us on Twitter  @Bombardier.

Bombardier, CRJ Series, CS100, CS300, C Series, Global, Global 5000Global 6000, Global 7000, Global 8000LearjetLearjet 75Q400 are trademarks of Bombardier Inc. or its subsidiaries.

For Information

Simon Letendre
Senior Advisor, Media Relations and Public Affairs
Bombardier Inc.
+514 861 9481
Patrick Ghoche
Vice President, Investor Relations
Bombardier Inc.
+514 861 5727

The Management’s Discussion and Analysis and the Interim Consolidated Financial Statements are available at  ir.bombardier.com.

bps: basis points

nmf: information not meaningful

(1) Non-GAAP financial measures. See Caution regarding non-GAAP measures at the end of this press release.

(2) Margin refers to EBIT margin before special items. Non-GAAP financial measure. See Caution regarding non-GAAP measures at the end of this press release.

(3) Defined as new orders over revenues.

(4)   Defined as cash and cash equivalents plus the amount available under the revolving credit facilities.

(5)   Defined as net orders received over aircraft deliveries, in units.                 

(6)   Defined as new external orders over external revenues.


This press release is based on reported earnings in accordance with International Financial Reporting Standards (IFRS). Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, EBIT before special items and EBITDA before special items, adjusted net income, adjusted earnings per share and free cash flow. These non-GAAP measures are mainly derived from the consolidated financial statements but do not have standardized meanings prescribed by IFRS; therefore, others using these terms may define them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our Financial Report with enhanced understanding of our results and related trends and increases the transparency and clarity of the core results of our business. Refer to the Non-GAAP financial measures and Liquidity and capital resources sections in Overview and each reporting segments’ Analysis of results sections in the Corporation’s MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.

Reconciliations to most comparable IFRS measures (PDF)


This press release includes forward-looking statements, which may involve, but are not limited to: statements with respect to the Corporation’s objectives, guidance, targets, goals, priorities, market and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; competitive position; the expected impact of the legislative and regulatory environment and legal proceedings on the Corporation’s business and operations; available liquidities and ongoing review of strategic and financial alternatives; the impact and expected benefits of the investment by the Government of Québec in the C Series Aircraft Limited Partnership and of the private placement of a minority stake in Transportation by the CDPQ on our operations, infrastructure, opportunities, financial condition, access to capital and overall strategy; and the impact of such investments on our balance sheet and liquidity position.

Forward-looking statements can generally be identified by the use of forward-looking terminology such as “may”, “will”,“shall”, “can”, “expect”, “estimate”, “intend”, “anticipate”, “plan”, “foresee”, “believe”, “continue”, “maintain” or “align”, the negative of these terms, variations of them or similar terminology. By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate.

Certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, risks associated with general economic conditions, risks associated with our business environment (such as risks associated with the financial condition of the airline industry, business aircraft customers, and the rail industry; trade policy; increased competition; political instability and force majeure), operational risks (such as risks related to developing new products and services; development of new business; the certification and homologation of products and services; fixed-price and fixed-term commitments and production and project execution; pressures on cash flows based on project-cycle fluctuations and seasonality; our ability to successfully implement and execute our strategy and transformation plan; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; the environment; dependence on certain customers and suppliers; human resources; reliance on information systems; reliance on and protection of intellectual property rights; and adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; retirement benefit plan risk; exposure to credit risk; substantial existing debt and interest payment requirements; certain restrictive debt covenants and minimum cash levels; financing support provided for the benefit of certain customers; and reliance on government support), market risks (such as risks related to foreign currency fluctuations; changing interest rates; decreases in residual values; increases in commodity prices; and inflation rate fluctuations). For more details, see the Risks and uncertainties section in Other in the Management’s Discussion and Analysis (MD&A) of the Corporation’s financial report for the fiscal year ended December 31, 2016. For additional information with respect to the assumptions underlying the forward-looking statements made in this press release, refer to the Guidance and forward-looking statements sections in the MD&A of the Corporation’s financial report for the fiscal year ended December 31, 2016.

Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. The forward-looking statements set forth herein reflect management’s expectations as at the date of this press release and are subject to change after such date. Unless otherwise required by applicable securities laws, the Corporation expressly disclaims any intention, and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

The Global 7000 and Global 8000 aircraft program is currently in development, and as such is subject to changes in family strategy, branding, capacity, performance, design and/or systems. All specifications and data are approximate, may change without notice and are subject to certain operating rules, assumptions and other conditions. This document does not constitute an offer, commitment, representation, guarantee or warranty of any kind.